According to Dappradar’s latest crypto industry report covering the third quarter of 2022, the crypto economy and its participants are “weathering a bear market.” However, these days, many macroeconomic events affect the crypto market, and Dappradar researchers now state that “it is impossible to foresee the global expansion of cryptocurrencies without a general recovery in the traditional financial markets.”
The Dappradar report emphasizes the slow but steady recovery of the crypto economy
The crypto industry is still dealing with the crypto winter, the latest report fromshows, and according to the latest Dappradarreport, markets and participants are trucking through the storm. For example, after the collapse of Terra, the decentralized finance (defi) and decentralized app (dapp) industries consolidated after suffering significant losses.
“In Q3, the correlation betweenBTC and S&increased; the P 500 increased, indicating that investors still consider crypto in the same category as risky stocks,” Dappradar’sresearcher Sarah Gherghelaselaborates.
Additionally, Ethereum’s transition from proof-of-work to proof-of-stake via The Merge boosted prices, but the crypto market “cooled after the event.” Additionally, Dappradar’sGherghelassays The Merge was a technical success, but a 36% drop in layer 2 (L2) transactions was recorded.
Despite the overall performance of the crypto market, adoption of the technology saw a significant uptick.” In July, Polygon and the Nothing company announced a partnership to build a Web3 native smartphone, and Disney, Ticketmaster, MasterCard, and Starbucks are the latest major brands to announce NFT integration as part of their Web3 strategy We are pleased to announce that we have now become the first company to do so.” Dappradar’s Q3 report further notes.
According to Dappradar researchers, a loss of $428.71 million was recorded in the third quarter of 2022. Most of the loss, Dappradar explains, was siphoned off from Nomad Bridge, which was $190 million.
“On a positive note, these numbers show a 62.9% decrease compared to the third quarter of 2021, when hackers and fraudsters stole $1,155,334,775.” Dappradar researchers add. In general, during the last quarter, the defi ecosystem has shown improvement, the study notes.
“With 2.9% growth in TVL (total value locked) from Q2,” Dappradar’s study notes, “Defi as a whole showed signs of recovery.” Ethereum remains the most dominant chain, with its dominance increasing to 69% at $48 billion, growing 3.17% from Q2.”
While the defi ecosystem and crypto economy as a whole declined in the third quarter, the non-fundable token market also recorded a decline in trading volume activity: according to Dappradar research, NFT trading volume declined 67%, while NFT sales volume declined by quarter, up 8.3% higher from the second quarter.
“The increase in sales indicates that the NFT business continues to be in great demand, while the overall decline in transaction volume can be attributed to the decline in cryptocurrency values,” Dappradar’s research report suggests.
The Dappradar report concludes that the global economy is facing “extreme difficulties” and, in the opinion of some, the tide could worsen. The researchers note that “we may be in the early stages of a crisis,” but that a turn in the tide could ultimately lead to a bullish upturn.
The Dapladder report concludes by detailing that “undoubtedly, a further bull market will occur, and it may be much stronger than the last one.” Each time the market faces difficulties, it will eventually get stronger and the quality of its efforts will increase.”
Image Credits: Shutterstock, Pixabay, Wiki Commons, Images via Dappradar’s Q3 Industry Report .